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USING RESIDENTIAL CONTRACT FOR COMMERCIAL ACCOUNTS / AUDIO ISSUES


Ken,
    In August of 2015 I purchased from you several Residential ALL In ONE contracts for different states and have been pleased not only with the contracts, but your frequent emails that bring to light both opportunities and pitfalls to avoid.
    Our business is primarily residential and we do some small commercial jobs.  For all jobs we use the residential contract language.  Most of our business transactions are for a homeowner who has a small business.  Is there any reason not to utilize the residential contracts for our business transactions?
    I have a customer that desires a camera system with audio recording in the common area of her furniture store.  She plans to display decals stating that the facility is recording video and audio.
    Is there any language that should be present in my contract other than the standard All In ONE language?  I advised my customer to contact her attorney and insurance company to get an opinion from them on what to do to limit her liability.  I likewise wish to be at ease with my liability being negligible.
    Please advise.
Thank you,
Chris Ford
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RESPONSE
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    Our Standard Form All in One agreements are designed to increase your sales and RMR, provide the best contractual language available to protect your company from claims and enhance your equity through RMR under proper contracts.  I so rarely get the opportunity to express that in my response, so thanks!!!
    I should also point out that when you have our contracts

  • I can take your "quick" contract questions and issues because I am familiar with the contract forms
  • we will support you for contract negotiations with your subscribers
  • we will assist with contract disputes with your subscribers
  • valuing your company will be easier and the value higher
  • getting insurance will be easier, maybe cheaper
  • making a deal with a central station will be easier, maybe cheaper
  • selling your subscriber accounts will be easier, and you'll get more money

    You must use a Residential form for residential subscribers.  You can use a Residential form with a Commercial subscriber.  You can also play tennis in your loafers, though I don't recommend it.  We made a Commercial form, the Commercial All in One, for a reason [and it wasn't so we could sell you another contract form].  Consumer contracts are required to have provisions that commercial contracts omit.  Some of the RMR services are also a bit different when dealing with commercial as opposed to residential accounts.  Best to use the contract designed for the applicable class of subscribers.  
    Cameras are covered in both the Residential and the Commercial All in One forms, as is audio. Laws governing audio vary state by state. In a one party consent state (like NY) employees can consent to being recorded, but there may be conversation to which employees or a party having given consent to the recording is not a party, in which case the employer should not be mechanically listening or recording.  Signs may not help in absolving from illegal eavesdropping.  However, I do see how audio could certainly be used legally in the retail store, so I don't think the alarm company is at risk, civilly or criminally, for the installation.  Perhaps the owner claims that the audio will only be used when the employees, who have consented, are alone.  Be careful though, because there may be areas where it's inconceivable that the audio can be or is intended to be used legally, such as in a bathroom [this is more apparent perhaps with video], or a room designed for private conversation for shoppers.  Use a little common sense, our Standard Form Agreement, and you'll be just fine.

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T